The Securities and Exchange Commission of Pakistan (SECP) has notified amendments to the Real Estate Investment Trust Regulations, 2022 to simplify procedures, strengthen governance and control mechanisms, and increase transparency in the operation of REIT schemes. The changes set clearer timelines for the transfer of real estate and shares in special purpose vehicles, with the aim of promoting earlier listing of REIT schemes. The amended framework strengthens the roles and responsibilities of REIT Management Companies and trustees, addresses regulatory arbitrage across different REIT structures, and improves synchronization with the Shariah governance framework. It also streamlines processes for registering trust deeds and obtaining approval for registration of REIT schemes, refines the definition of real estate to distinguish passive and active components, and introduces income and asset test requirements to ensure schemes are primarily invested in and derive income from real estate. SECP said the amendments follow an extensive stakeholder consultation process, including a consultation paper, multiple in-person and virtual engagements, consultation on draft amendments, and a concluding session in Karachi.

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